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Contractors and suppliers often face payment issues globally. In Texas, when contractors work on a property, they are entitled to lien rights. Normally, proper

Contractors and suppliers often face payment issues globally. In Texas, when contractors work on a property, they are entitled to lien rights. Normally, property transactions involve a title company. One of their roles is to ensure the clearance of liens and manage the escrow of funds, transferring the purchase money from the buyer to the seller once they have established clear title. Additionally, they provide title insurance to the new owner, guaranteeing a title free from encumbrances like construction liens. This process is crucial for safeguarding the interests of all parties involved in property transactions. Its hard to tell who is in the right without more facts. But it is clear the way the transaction was handled is part of the problem.

toomuchtodo 3y ago
Conversely, Texas mechanics liens have little recourse when a property owner encounters a contractor acting in bad faith. I recently assisted a friend challenge an improper lien on their homestead in Dallas when a plumbing company quit the job halfway through because they couldn’t use their epoxy repair technique and walked away. The contractor filed the lien for the total amount agreed upon because state law makes it trivial to do, and it is an uphill battle to challenge a lien. It only worked out in the end because we had accumulated a paper trail via email and sms messages with the contractor, and reported them with said evidence to the state licensing apparatus. If engaging contractors in Texas for property work, get everything in writing and have an attorney familiar with construction law at the ready.
- jmacd 3y ago
  I've experienced the same thing. In commercial projects in some places, the contractors actually just file liens right away "as a matter of practice". They automatically expire 60 (or some number of) days after the last day of work on the project, unless it is "perfected" by filing an actual lawsuit. At least that is the case in Canada. That seems to at least shift some of the cost and risk to the lien filer as they must pay for a lawyer, be ready to prosecute, etc.
  - justinclift 3y ago
    > In commercial projects in some places, the contractors actually just file liens right away "as a matter of practice". Sounds like a great way to get themselves black listed.

toomuchtodo 3y ago

Conversely, Texas mechanics liens have little recourse when a property owner encounters a contractor acting in bad faith. I recently assisted a friend challenge an improper lien on their homestead in Dallas when a plumbing company quit the job halfway through because they couldn’t use their epoxy repair technique and walked away. The contractor filed the lien for the total amount agreed upon because state law makes it trivial to do, and it is an uphill battle to challenge a lien. It only worked out in the end because we had accumulated a paper trail via email and sms messages with the contractor, and reported them with said evidence to the state licensing apparatus. If engaging contractors in Texas for property work, get everything in writing and have an attorney familiar with construction law at the ready.

jmacd 3y ago
I've experienced the same thing. In commercial projects in some places, the contractors actually just file liens right away "as a matter of practice". They automatically expire 60 (or some number of) days after the last day of work on the project, unless it is "perfected" by filing an actual lawsuit. At least that is the case in Canada. That seems to at least shift some of the cost and risk to the lien filer as they must pay for a lawyer, be ready to prosecute, etc.
- justinclift 3y ago
  > In commercial projects in some places, the contractors actually just file liens right away "as a matter of practice". Sounds like a great way to get themselves black listed.